Influence of Government Policies on Entrepreneurial Activity in Cameroon

Abstract

Purpose: The aim of the study was to assess the influence of government policies on entrepreneurial activity in Cameroon.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study found that favorable policies, such as tax incentives, access to funding, and streamlined regulatory processes, can significantly boost entrepreneurship. These policies often lead to increased startup formation rates, higher levels of innovation, and greater job creation within the economy. Conversely, stringent regulations, high taxes, and limited access to financing can stifle entrepreneurial endeavors and hinder economic growth. Moreover, government support through initiatives like incubators, training programs, and mentorship networks has been found to positively influence the success and sustainability of startups. Overall, a conducive policy environment is crucial for fostering a vibrant entrepreneurial ecosystem.

Implications to Theory, Practice and Policy: Institutional theory, resource dependence theory and innovation diffusion theory may be used to anchor future studies on assessing the influence of government policies on entrepreneurial activity in Cameroon. In practical terms, governments and support organizations should implement tailored programs that address the specific needs of diverse entrepreneurial demographics. From a policy perspective, governments should prioritize the development of flexible regulatory frameworks that balance innovation with regulatory oversight.